Energy firm workers 'not consulted' over redundancies
- Published
Former employees at an energy supplier which has ceased trading could take legal action over how their redundancies were handled.
Edinburgh-based People's Energy, which supplies gas and electricity to 350,000 homes and 1,000 businesses, announced on Tuesday that it was closing.
Ex-workers claim they were not consulted before being dismissed.
One member of staff said they were told to collect their things and leave the premises with immediate effect.
A legal firm approached by more than a dozen former employees of the firm, which also has an office in Selkirk, said they had been "summoned into the office" to be told their jobs had been lost, after the company failed to agree terms.
'Very anxious'
Mohammed Balal, of Aticus Law, believes the company may have failed to properly consult with staff about the job losses.
If they make successful a claim, the firm said they could receive up to eight weeks' worth of pay in compensation, with a cap of £544 per week.
Mr Balal said: "They have literally had their lives turned upside down and are understandably feeling very anxious and concerned about what the future holds."
National advice service Advice Direct Scotland has said energy supplies to customers of People's Energy and Utility Point - which also announced on Tuesday that it is to close - would continue.
It also said those affected would not lose any money owed to them.
Consumers have also been advised not to immediately switch to a new supplier as a new company will be chosen by regulator Ofgem.
People's Energy was formed in 2017 by East Lothian couple David Pike and Karin Sode following a crowdfunding campaign.
The firm promised to return profits to its customers in a transparent, ethical way of working.
In August last year, it announced plans to create 100 new jobs with an expansion into the Borders.